Flutter to Cut 1,400 UK and Ireland Jobs Amid Tax Increases

Flutter Entertainment, owner of Paddy Power, announced plans to cut 1,400 jobs across its UK and Ireland division. This move is attributed to significant increases in UK gambling taxes implemented by the Labour government.

What Happened

Flutter, a New York-listed firm, will restructure its UK and Ireland division, affecting approximately 15 percent of its workforce. Redundancies are set to impact roles in Leeds and Dublin, as well as support staff in Portugal and Romania (City A.M.). The betting group stated that these job losses are a direct response to a “significant increase” in UK gambling taxes, which were announced in last year’s Autumn Budget (City A.M.).

Former chancellor Rachel Reeves nearly doubled the gambling charge from 21 percent to 40 percent, with these changes taking effect in April of the current year (City A.M.). Bookmakers are also preparing for a levy on their profits to increase from 15 percent to 25 percent starting April 2027 (City A.M.). Kevin Harrington, Flutter’s UK&I chief executive, commented that the gambling industry “cannot fully absorb a rise of this magnitude without reducing our fixed cost base” (City A.M.).

Key Details

• Flutter’s job cuts represent about 15 percent of its UK and Ireland workforce (City A.M.).
• The tax on the gambling sector increased from 21 percent to 40 percent, effective April of this year (City A.M.).
• An additional levy on profits is scheduled to rise from 15 percent to 25 percent in April 2027 (City A.M.).
• Flutter owns brands including Paddy Power, Sky Bet, Betfair, and Tombola, and employs 8,960 people in its UK and Ireland division (City A.M.).
• The Office for Budget Responsibility warned in November 2025 that increased taxes could lead to gamblers moving to illegal websites, potentially reducing the expected tax revenue by approximately £500 million (City A.M.).

Why It Matters

The gambling industry views the recent tax hikes as having “fundamentally changed the economic model of the regulated betting and gaming industry in the UK,” potentially fueling the unlicensed market, according to Kevin Harrington (City A.M.). This perspective is supported by the Office for Budget Responsibility’s warning about a potential £500 million reduction in tax take due to gamblers migrating to illegal gambling websites (City A.M.).

Flutter’s redundancy plans follow previous warnings that Labour’s tax increases would result in a £400 million financial impact by April 2027, necessitating cost-cutting measures (City A.M.). The company’s share price has reportedly fallen by 64.5 percent since the start of the year (City A.M.). Other operators, including William Hill, Betfred, Bet365, and Entain, have also cited tax increases as a reason for job reductions and store closures (City A.M.).

What’s Next

Six gambling executives, including Flutter’s Kevin Harrington, have reportedly written to the Chancellor to advocate against further tax increases and to halt next year’s planned rise in betting duty (City A.M.). They cautioned that additional hikes could lead to as many as 15,900 job losses, 1,470 shop closures, and 34 casino closures (City A.M.). Healey is reportedly considering whether to raise machine gaming duty in the Autumn Budget (City A.M.).

Originally reported by City A.M.·Published 20 Oct 2026, 13:17